Determinants of the Physical Demand for Gold : Evidence from Panel Data

Although the role of gold in the world economy has declined since the gold standard was abandoned, it remains important as a central bank reserve, a hedge against risks, a barometer of geopolitical uncertainty, and an input for jewellery. While portfolio demand for gold has been well studied, determ...

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Main Authors:	Starr, Martha, Tran, Ky
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Consumption Saving Wealth E210 Portfolio Choice Investment Decisions G110 Metals and Metal Products Cement Glass Ceramics L610
Online Access:	http://hdl.handle.net/10986/4960

id	okr-10986-4960
recordtype	oai_dc
spelling	okr-10986-49602021-04-23T14:02:20Z Determinants of the Physical Demand for Gold : Evidence from Panel Data Starr, Martha Tran, Ky Macroeconomics: Consumption Saving Wealth E210 Portfolio Choice Investment Decisions G110 Metals and Metal Products Cement Glass Ceramics L610 Although the role of gold in the world economy has declined since the gold standard was abandoned, it remains important as a central bank reserve, a hedge against risks, a barometer of geopolitical uncertainty, and an input for jewellery. While portfolio demand for gold has been well studied, determinants of physical demand are less understood. Certain emerging-market countries such as China and India import substantial amounts of gold, with several factors that may contribute: low financial development, need for precautionary savings and/or strong cultural valuation of gold itself. This article uses panel data on gold imports of 21 countries to examine determinants of physical demand. We find that determinants of physical demand differ from those of portfolio demand, and that they differ between the developed and developing worlds. 2012-03-30T07:30:35Z 2012-03-30T07:30:35Z 2008 Journal Article World Economy 03785920 http://hdl.handle.net/10986/4960 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Consumption Saving Wealth E210 Portfolio Choice Investment Decisions G110 Metals and Metal Products Cement Glass Ceramics L610
spellingShingle	Macroeconomics: Consumption Saving Wealth E210 Portfolio Choice Investment Decisions G110 Metals and Metal Products Cement Glass Ceramics L610 Starr, Martha Tran, Ky Determinants of the Physical Demand for Gold : Evidence from Panel Data
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Although the role of gold in the world economy has declined since the gold standard was abandoned, it remains important as a central bank reserve, a hedge against risks, a barometer of geopolitical uncertainty, and an input for jewellery. While portfolio demand for gold has been well studied, determinants of physical demand are less understood. Certain emerging-market countries such as China and India import substantial amounts of gold, with several factors that may contribute: low financial development, need for precautionary savings and/or strong cultural valuation of gold itself. This article uses panel data on gold imports of 21 countries to examine determinants of physical demand. We find that determinants of physical demand differ from those of portfolio demand, and that they differ between the developed and developing worlds.
format	Journal Article
author	Starr, Martha Tran, Ky
author_facet	Starr, Martha Tran, Ky
author_sort	Starr, Martha
title	Determinants of the Physical Demand for Gold : Evidence from Panel Data
title_short	Determinants of the Physical Demand for Gold : Evidence from Panel Data
title_full	Determinants of the Physical Demand for Gold : Evidence from Panel Data
title_fullStr	Determinants of the Physical Demand for Gold : Evidence from Panel Data
title_full_unstemmed	Determinants of the Physical Demand for Gold : Evidence from Panel Data
title_sort	determinants of the physical demand for gold : evidence from panel data
publishDate	2012
url	http://hdl.handle.net/10986/4960
_version_	1764393400758435840

Determinants of the Physical Demand for Gold : Evidence from Panel Data

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